Hayward Holdings, Inc. · NYSE:HAYW
Hayward — Q4 2024 Earnings Presentation
26 slides from Hayward's earnings presentation, Feb 27, 2025
Slide 1: Fourth Quarter and Full Year 2024 Earnings
FOURTH QUARTER AND FULL YEAR 2024 EARNINGS February 27, 2025 © 2025 Hayward Holdings, Inc.
Slide 2: Fourth Quarter and Full Year 2024 Earnings Call
FOURTH QUARTER AND FULL YEAR 2024 EARNINGS CALL KEVIN HOLLERAN President and Chief Executive Officer EIFION JONES Senior Vice President and Chief Financial Officer KEVIN MACZKA Vice President of Investor Relations and FP&A NYSE: HAYW © 2025 Hayward Holdings, Inc. 2
Slide 3: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation includes certain statements that are “forward-looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995 that are based on the beliefs of Hayward’s mana
Slide 4: Celebrating 100 Years of Hayward
Celebrating 100 Years of Hayward FR OM H U M B LE B E GI N N I N GS TO GLOB AL P U B LI C C OM PAN Y Irving Hayward Oscar Davis Hayward IPO Hayward Celebrating Establishes Hayward Acquires Hayward & NYSE: HAYW 100 Years Enters Pool Market 1925 1960s 2021 Today © 2025 Hayward Holdings, Inc. 4
Slide 5: Key Messages
Key Messages Reported Q4 2024 results ahead of expectations; net sales +17% YoY Delivered solid margin expansion; record full year gross profit margin1 of 50.5% Generated strong cash flow; reduced net leverage2 to 2.8x Executed key strategic initiatives; well positioned for profitable growth Introdu
Slide 6: Financial Overview
Financial Overview • Net sales of $327.1M • Gross profit margin of 51.4% Q4 2024 • Adj. EBITDA1 of $98.7M RESULTS REFLECT: • Adj. EBITDA margin1 of 30.2% • Adj. diluted EPS1 of $0.27 ▪ Continued solid execution, notably in NAM ▪ Positive net price realization and increased volumes ▪ Strong gross pro
Slide 7: 2024 Highlights
2024 Highlights Executed Key Strategic Initiatives; Well-positioned for Profitable Growth Product Innovation Customer Experience Financial ✓ Increased investments in RD&E ✓ Invested in enhanced customer service and support, ✓ Increased net sales 6% YoY improved customer loyalty rewards programs ✓ In
Slide 8: Corporate Strategy
Corporate Strategy Organic • Execute global product and technology leadership roadmaps Growth • Advance regional sales & marketing strategies • Expand customer experience initiatives • Accelerate growth plans in Commercial Pool and Flow Control markets Margin • Proven culture of operational excellen
Slide 9: Fourth Quarter 2024 Financials
Fourth Quarter 2024 Financials NET SALES +17.5% YoY ▪ Net price +4% NET SALES OF $327.1M ▪ Volume +12% ▪ Acquisition +2% (ChlorKing) GROSS PROFIT MARGIN OF 51.4% ▪ Increased 220 bps YoY despite 50 bps purchase accounting impact GROSS PROFIT OF $168.0M ▪ Strong execution, increased operational effici
Slide 10: Full Year 2024 Financials
Full Year 2024 Financials NET SALES +6.0% YoY ▪ Net price +3% NET SALES OF $1.052B ▪ Volume +2% ▪ Acquisition +1% (ChlorKing) GROSS PROFIT MARGIN OF 50.5% ▪ Increased 240 bps YoY despite 30 bps purchase accounting impact GROSS PROFIT OF $530.8M ▪ Strong execution, increased operational efficiencies
Slide 11: Fourth Quarter 2024 Segment Overview
Fourth Quarter 2024 Segment Overview NORTH AMERICA EUROPE & REST OF WORLD NET SALES GROSS PROFIT ADJ. SEGMENT INCOME1 NET SALES GROSS PROFIT ADJ. SEGMENT INCOME1 $286.0M $155.1M $104.9M $41.1M $12.9M $5.3M YoY Change: Gross Profit Margin: Adj. Segment YoY Change: Gross Profit Margin: Adj. Segment +2
Slide 12: Full Year 2024 Segment Overview
Full Year 2024 Segment Overview NORTH AMERICA EUROPE & REST OF WORLD NET SALES GROSS PROFIT ADJ. SEGMENT INCOME1 NET SALES GROSS PROFIT ADJ. SEGMENT INCOME1 $895.5M $474.3M $291.0M $156.1M $56.5M $22.9M YoY Change: Gross Profit Margin: Adj. Segment YoY Change: Gross Profit Margin: Adj. Segment +8.8%
Slide 13: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights BALANCE SHEET ($M) CASH FLOW ($M) 12/31/2024 FY 2024 FY 2023 Cash and cash equivalents $197 $600M fixed rate, Cash flow from operating activities $212 $185 remainder variable Total debt principal $974 Blended interest Less capex ($24) ($31) rate of 6.4%5 Term d
Slide 14: Capital Allocation Priorities
Capital Allocation Priorities GROWTH INVESTMENTS 1 • Innovative new product development, IoT digital leadership • Commercial programs, dealer conversions • Operational excellence, productivity, growth capex Funding strategic 2 STRATEGIC M&A • Pipeline of tuck-in opportunities to growth investments c
Slide 15: FY 2025 Financial Outlook
FY 2025 Financial Outlook Net sales of $1.060B to $1.100B Adjusted EBITDA1 of OUTLOOK REFLECTS: $280M to $290M Seasonality expectations ▪ Resilient non-discretionary aftermarket Free cash flow1 of ~$160M, maintenance • Normal seasonal strength in Q2 / Q4 • Q1 lowest sales quarter of the year >100% o
Slide 16: Key Messages
Key Messages Reported Q4 2024 results ahead of expectations; net sales +17% YoY Delivered solid margin expansion; record full year gross profit margin1 of 50.5% Generated strong cash flow; reduced net leverage2 to 2.8x Executed key strategic initiatives; well positioned for profitable growth Introdu
Slide 17: Company Overview
COMPANY OVERVIEW © 2025 Hayward Holdings, Inc. 17
Slide 18: Hayward at a Glance
COMPANY OVERVIEW Hayward at a Glance ✓ Global leader in pool and outdoor living technology with the industry’s most recognized and trusted brand $1.05B 50.5% ✓ Strong, recurring aftermarket sales driven by one of the largest installed bases in the world 2024 2024 Gross Profit Net Sales margin ✓ Ener
Slide 19: Why Invest in Hayward?
COMPANY OVERVIEW Why Invest in Hayward? • Secular tailwinds (sunbelt migration, healthy outdoor living) Attractive • Large installed base that grows every year Industry • Disciplined industry, demonstrated pricing power • Aftermarket1 sales mix historically ~80% Recurring • Majority non-discretionar
Slide 20: Attractive Long-Term Growth Dynamics
COMPANY OVERVIEW Attractive Long-Term Growth Dynamics Secular Tailwinds Industry Drivers Competitive Advantages ✓ Healthy outdoor living ✓ Growing, aging installed base ✓ Strong brand and installed base ✓ Sunbelt migration ✓ Predictable, non-discretionary ✓ Technology leadership aftermarket spending
Slide 21: Appendix: Non-GAAP Reconciliations
APPENDIX APPENDIX Non-GAAP Reconciliations Non-GAAP Reconciliations © 2025 Hayward Holdings, Inc. 21
Slide 22: Adjusted EBITDA & Adjusted EBITDA Margin Reconciliation
Adjusted EBITDA & Adjusted EBITDA Margin Reconciliation APPENDIX © 2025 Hayward Holdings, Inc. 22
Slide 23: Adjusted Net Income & Adjusted EPS Reconciliation
Adjusted Net Income & Adjusted EPS Reconciliation APPENDIX © 2025 Hayward Holdings, Inc. 23
Slide 24: Adjusted Segment Income Three Months Ended Reconciliation
Adjusted Segment Income Three Months Ended Reconciliation APPENDIX © 2025 Hayward Holdings, Inc. 24
Slide 25: Adjusted Segment Income Twelve Months Ended Reconciliation
Adjusted Segment Income Twelve Months Ended Reconciliation APPENDIX © 2025 Hayward Holdings, Inc. 25
Slide 26: Thank You
THANK YOU © 2025 Hayward Holdings, Inc. 26